_____ shows that if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another
D. the production possibilities frontier model
one would speak of a movement along a supply curve for a good, rather than a change in supply, if _____
C. the price of the good changes
What is the value of the portion of consumer surplus that has been transferred to producer surplus as a result of the price floor?
In a production possibilities frontier model, a point inside the frontier is
D. Productively inefficient
Suppose that when the price of hamburgers increases, the Ruiz family increases their purchases of hot dogs. To the Ruiz family
D. Hamburgers and hot dogs are substitutes
Economics is the study of _____ people make to attain their goals, given their _______ resources.
B. Choices, Scarce
If the prices of motorcycle engines increases, and the wages of motorcycle workers increase, how will the equilibrium point change?
B. The equilibrium point will move from A to B
Suppose the demand curve for a product is downward sloping and the supply curve is upward sloping. If a unit tax is imposed in the market for this product?
D. the tax burden will be shared by buyers and sellers
Kendra's marginal benefit from consuming the second ice cream cone is?
Economics promotes which of the following as the way to make the best decision?
D. Continue an enjoyable activity up to the point where its marginal benefit equals its marginal cost
each point on a demand curve shows
A. willingness of consumers to purchases a product at different prices
economists assume that rational people
D. respond to economic incentives
A movement from ______ could occur because of an influx of immigrant labor
B. X to Y
To affect the market outcome, a price floor
D. must be set above the equilibrium price
Which of the following best describes an assumption economists make about human behavior?
B. They assume that rational behavior is useful in explaining choices people make even though people may not behave rationally all the time.
Increasing opportunity cost along a bowed out production possibilities frontier occurs because
C. some factors of production are not equally suited to producing both goods or services.
What area represents producer surplus at a price of P1?
Opportunity cost is defined as
C. the highest valued alternative that must be given up to engage in an activity
A critical function of the government in facilitating the operation of a market economy a
B. setting up and enforcing private property rights
Allocative efficiency is achieved when
B. firms produce the goods and services that consumers value most
An _____ is represented by a rightward shift of the demand curve while and _____ is represented by a movement along a given demand curve.
B. increase, increase
If the economy is currently producing at point Y, what is the opportunity cost of moving to point X?
C. 5 million tons of paper
the processes used to produce goods and services describes
Which of the following is an example of spending on factors of production in the circular flow model?
D. the "Lucky Ducky" casino buys new craps table for the casino floor
Assume there is a surplus in the market for hybrid automobiles. which of the following statements correctly describes this situation?
C. the price of hybrid automobile will fall in response to the surplus, as the price falls the quantity demanded will increase and the quantity supplied will decrease.
If the production possibilities frontier is linear, then
D. opportunity costs are constant as more of one good is produced.
consumer surplus in a market for a product would be equal to the area under the demand curve if
D. the market price was zero
Specializing in the production of a good or service in which one has a comparative advantage enables a country to do which of the following?
C. consume a combination of goods that lies outside its own production possibilities frontier
Deadweight loss refers to
D. the reduction in economic surplus resulting from not being in competitive equilibrium
At a product's equilibrium price
D. Any buyer who is willing and able to pay the price will find a seller for the product
Assume that this is a competitive market. if the price increases from the equilibrium price to $3, then this is a competitive market. if the price increases from the equilibrium price to $3 then?
C. at the equilibrium price the total surplus is $15,000 and at the new price it is decreased by $10,000
Which of the following is not a flow in the circular flow model?
B. the flow of profit and the flow of orders
How much of the tax is paid by buyers?
Which of the following is a positive economic statement?
B. if the price of gasoline rises, a smaller quantity will be bought
the _____ effect of a price change refers to the impact of a change in the price of a good on a consumer's purchasing power
If a firms expects that the price of its product will be lower in the future that it is today
A. the firm has an incentive to increase supply now and decrease supply in the future
Which of the following is a result of imposing a rent ceiling?
C. there is an increase in the quantity of apartments demanded
What is an economic model?
D. It is a simplified version of some aspect of economic life used to analyze an economic issue
During the recession of 07-09, McD's experienced increased sales. this increase in demand for food such as the big mac incidates that the big mac is an inferior good, which in economic terms means
D. the demand for the big mac increases when income decreases
the equilibrium price is _____ and if the price is $15, then
B. $20, there would be a shortage of 300 units
If the demand for a product decreases and the supply of the product does not change, equilibrium price and equilibrium quantity will both increase
On a diagram of production possibility frontier, opportunity cost is represented by the slope of the production possibility frontier
The idea underlying Adam Smith's invisible hand is that people tend to behave in ways that go unnoticed in society
When voluntary exchange takes place, only one party gains from the exchange
If a country is producing efficiently and is on the production possibilities frontier, the only way to produce more of one good is with an advance in technology
It is not possible to have a comparative advantage in producing a good or service without having a absolute advantage
Examining the conditions that could lend to inflation in an economy is an example of microeconomics topic
A positive technological change will cause the quantity supplied of a good to increase
There is a shortage of every good that is scarce
The difference btwn consumer surplus and producer surplus in a market is equal to the deadweight loss